This document discusses how employers can use voluntary benefits as a creative risk management strategy to control costs and reduce workers' compensation claims. It states that offering voluntary accident and disability insurance can help decrease the frequency and expense of workers' compensation claims, with 40% of companies reporting declines in workers' comp claims from offering voluntary accident insurance and 36% reporting declines from voluntary disability insurance. The document advocates that incorporating voluntary benefits into an employee benefits package can help employers more effectively manage risks while providing employees with valuable financial protection.

1. Leverage voluntary benefits as a creative risk
management strategy to help you control costs
and reduce workers’ compensation claims.
Control costs
Workers’ comp coverage, although mandatory in most states, adds yet another pressure point
for employers continually looking for ways to control rising costs. Workers’ comp utilization may
actually increase as employees’ out-of-pocket major medical plan costs, such as deductibles
and co-pays, increase. Voluntary and benefits plan redesign can be an effective component of
your company’s overall cost control conversation.
Whether you fully fund the coverage or offer employee-paid options as part of an overall
benefits package, adding the appropriate mix of voluntary to core offerings is a simple way
to more effectively manage risk transfer from rate-variable workers’ comp coverage to rate-
stable voluntary products. For employees, the added voluntary benefits limit their out-of-pocket
financial exposure. And, they can help lower your bottom line expenses without sacrificing
employee access to financial protection against unexpected accidents or illnesses.
Reduce workers’ compensation claims
Offering voluntary accident and disability insurance continues to gain traction as an
effective way to help decrease the frequency and expense of workers’ comp claims. A
robust national employer study commissioned by Aflac in 2014 supported similar 2013
findings, validating historically anecdotal claims that providing access to voluntary accident
and disability insurance results in declines in the number of workers’ comp claims. The
2014 survey found that:1
• 40% of companies providing access to voluntary accident insurance reported declines in
their workers’ comp claims.
– When responses were broken down by company size, the survey found
that 50% of large companies, 38% of medium companies and 36% of small
companies reported declines.
• 36% of companies providing access to voluntary disability insurance reported declines in
their workers’ comp claims.
– When responses were broken down by company size, the survey found that
46% of large companies, 28% of medium companies and 34% of small companies
reported declines.
Creative
Risk Management
of companies providing
access to voluntary
accident insurance
reported declines in their
workers’ comp claims.
of companies providing
access to voluntary
disability insurance
reported declines in their
workers’ comp claims.
40%
36%

2. Sources
1
Aflac’s “Impact of Voluntary Accident Insurance and Voluntary Disability Insurance on Workers’ Compensation Claims and Worker Absenteeism Study"
is based on a nationwide survey conducted in July 2014 by Research Now and Aflac. Survey participants included a representative sample of 945
employers at small, medium and large U.S. companies. Small employers were defined as those with three-99 employees. Medium employers were
defined as those with 100-499 employees. Large employers were defined as those with 500 or more employees.
Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life
Assurance Company of New York.
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Creative risk management in action
As you incorporate voluntary benefits as a risk management strategy, proper execution through employee
access and education is key. The better employees understand how the benefits work, what cash benefits
amounts are paid directly to them and how to access the benefits when needed, the better the outcomes
will be for your company and employees.
Talk with your Aflac representative to develop a customized
risk management strategy with voluntary benefits.